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Thursday, 22 November 2012

Vinance plc: some information from the administrators

Here are answers to some initial questions I put to Herron Fisher, the administrators:

a) What has caused Vinance plc to go into
administration?

It appears that part of the cause for going into administration
was poor management of the business, however as the situation has just been
handed over to Herron Fisher the full details of the issue have yet to be
firmly established.
b) Are some of the wines outstanding Bordeaux en primeur orders. If so
from what vintages and how much money is involved? Are Vinance plc up to date
on payment for these en primeur wines?
The exact details on the wine stock or the details of all investments, en
primeur or otherwise, is just being established. However the majority of
creditors are wine investors rather than suppliers.

c) When do you expect to have a first estimate of what the total deficiency is?

6 weeks

NOTES:
• Vinance Plc had a turnover of approximately GBP £1million. This is
commissions, not the amount of wine sold on behalf of third parties.
• The court order to put the business into administration was sought by the
directors
• Vinance plc has four directors; (3 are based in the UK and one is overseas)
and six shareholders.
• It has approximately 1,000 UK creditors; the vast majority of these being
wine investors (rather than suppliers)
• The value of wine assets has not yet been fully determined but it is
estimated at a few million pounds
• Vinance plc has 10 employees

•••

23.11.12

From comments received by investdrinks there would appear to be some clients who bought wine from Vinance plc some years ago who have yet to be allocated their wine. Hopefully they will find that their wines have been allocated to them. If not then it may be that Vinance plc/Morgan Aston Ford took money from clients for wine that they failed to supply.

There are also some clients who asked Vinance plc to sell their wines and either it took a long time or no sale was negociated. A practical example of one of the disadvantages of paying an upfront commission with no commission when you come to sell. The wine merchant has no incentive to sell your wine.

29.11.2012I understand that the administrators have found a buyer for Vinance plc and are writing to all Vinance customers to inform them and give details of the purchaser. The name of the company willing to buy Vinance plc will be released tomorrow. I trust that this company is reputable and is acting in the interests of the investors and is not a white-knight operation that has unfortunately happened in the past.

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